City strikes a deal with employees on benefits

Los Angeles' municipal workers have agreed to pay more toward their retirement and health costs in a major breakthrough to help balance Mayor Antonio Villaraigosa's proposed $6.9 billion budget for next year.

The agreement by 14 of the 18 bargaining units in the Coalition of City Unions is expected to save upwards of $200 million in the 2011-12 budget and guarantee that workers who approved the pact they will not face additional furloughs this year.

"We voted with the best interests of Los Angeles residents in mind," said Tim Butcher, a heavy-duty truck operator with the Bureau of Street Services and a member of the coalition's bargaining team. "The changes to our contracts will end furloughs immediately, and that means we can get back to work for the people of this city."

The coalition represents almost 20,000 employees.

The 6,300 workers in unions that rejected the proposal - deputy city attorneys, plant operators, clerical workers and internal security guards - will have to take six furlough days by July1 and 36 additional unpaid days during the next fiscal year.

The furlough days were the alternative to a plan that requires workers to contribute 4 percent of their pay for health care costs and increase pension payments from 6 to 11 percent.

That coalition package also included a four-day unpaid period that would result in the closing of City Hall between Christmas and New Year's Day. Negotiators did not term those furlough days because the funds for the unpaid time will be taken out of workers' paychecks in small amounts spread over the entire year.

Workers who rejected the proposed contract might have a chance to vote on it again.

During a news conference, Villaraigosa said he believes the agreement shows that workers and city management can work to find solutions.

"Workers and city leaders have come together to negotiate a structural solution," Villaraigosa said. "We have a message: collective bargaining works."

He also said it will likely serve as a template in talks with other city unions, including those representing police officers and firefighters.

"We will balance this budget," Villaraigosa said. "It will be through these contracts or by furloughs. We have no other choice."

City Council President Eric Garcetti said it showed that the unions would negotiate with the city.

"The city and the coalition put politics aside and focused on problem solving to achieve structural reform, lower budget costs and increase service delivery."

The city is facing a deficit of $457 million in fiscal 2011-12, with revenues expected to increase by only 0.1 percent, City Administrative Officer Miguel Santana said.

"That is about as close to zero (growth) as we can get," Santana told the City Council's Budget and Finance Committee as it began reviewing the spending plan.

One major battle brewing over the budget centers on plans to slash the Los Angeles Fire Department budget by $54 million. Chief Millage Peaks has drafted a deployment plan that would trim firefighting resources while increasing medical response capabilities.

Pat McOsker, president of the United Firefighters of Los Angeles City, said the proposed deployment plan would place public safety at risk.

"To close these units and make them permanent will endanger the public," McOsker said. "Don't be fooled that they are going to change the names of our paramedics. This is a cut, plain and simple, and jeopardizes public safety."

McOsker said the union has found $10 million in savings that could come from the new investigation division in the LAFD and in contract savings.

Peaks defended his proposal, however, saying the department has been in transition to achieve savings while providing public safety and responding to calls within five minutes.

"This plan is designed to maintain service delivery under reduced budgets," Peaks said. "The deployment plan trims $53.7 million and brings stability to the department by ending the modified deployment plan."